Khd Humboldt Wedag International Ag · XETR:KWG

Khd Humboldt Wedag International — Shareholder Meeting (October 2020)

32 slides from Khd Humboldt Wedag International's shareholder meeting presentation, Oct 6, 2020

  1. Slide 1: Virtual Annual General Meeting

    Virtual Annual General Meeting October 6, 2020 KHD Humboldt Wedag International AG Shen, CEO | Luckas, CFO | Xing, EVP | Jochem, COO | Mersmann, CTO

  2. Slide 2: Address from KHD’s Chief Operating Officer

    Address from KHD’s Chief Operating Officer  The Financial Year 2019 was a year full of challenges but also full of positive changes.  Significant additional costs for some orders from previous years had a negative impact on earnings.  In the USA we were able to win one of the largest orders in ou

  3. Slide 3: Address from KHD’s Chief Operating Officer

    Address from KHD’s Chief Operating Officer  The successful implementation of the reorganization of Humboldt Wedag GmbH at the Cologne headquarters under the leadership of CEO Mario Zhu led to significantly reduced structural costs and enabled more efficient work.  With the two new Management Board

  4. Slide 4: Management Board

    Management Board CEO CFO EVP COO CTO Jianlong Shen Jürgen Luckas Tao Xing Dr. Matthias Jochem Matthias Mersmann  CEO since October 1  Since 2006 with KHD  Member of KHD’s MB  Since June 2019  Since February 2020  So far responsible for  CFO since April 2015 in 2016 and since back at KHD as MB

  5. Slide 5: Product Portfolio

    Product Portfolio  Over 160 years of experience in the cement industry.  We offer the full line of equipment and engineered solutions for cement plants, including individual machines, spare parts, and associated plant services.

  6. Slide 6: Agenda

    Agenda Business Performance 2019 Financial Performance 2019 First eight Months (Jan. – August) of the Financial Year 2020 Outlook and Strategy Questions 6 Annual General Meeting – October 2020

  7. Slide 7: Order Intake

    Order Intake  At € 301,1 million, total order intake was significantly higher than in the previous year (€ 141,7 million). A major order in the USA contributed significantly to this.  The Capex segment achieved an order intake of € 265,8 million, well above the previous year’s figure of € 98,6 mil

  8. Slide 8: Agenda

    Agenda Business Performance 2019 Financial Performance 2019 First eight Months (Jan. – August) of the Financial Year 2020 Outlook and Strategy Questions 8 Annual General Meeting – October 2020

  9. Slide 9: Key Figures at a Glance

    Key Figures at a Glance (in € million) 2019 2018 Deviation Order intake 301,1 141,7 159,4 Revenue 146,3 151,8 -5,5 Adjusted gross profit * 12,1 -0,6 12,7 * Adjustments: Adjusted gross profit margin 8,3% -0,4% 2019: € 1,8 million idle capacity, € 6,4 million reorganization Adjusted EBIT * -14,4 -28,6

  10. Slide 10: Revenue

    Revenue Group revenue  A lower order backlog at the beginning of FY 2019 in € million compared to the previous year led to revenues of 160 151,8 146,3 € 146,3 million - a decrease of 3,6% compared to 140 135,4 the previous year (€ 151,8 million). 120 100,1  At € 104,2 million, revenues in the Cape

  11. Slide 11: Group Earnings

    Group Earnings  The adjusted gross profit* improved very significantly from adjusted gross profit and GP margin € -0.6 million in FY 2018 to € 12.1 million in FY 2019.  The adjusted gross profit in FY 2019 was again impacted by excess costs due to difficulties in executing some projects from previ

  12. Slide 12: Group Earnings – Sales and G&A Expenses

    Group Earnings – Sales and G&A Expenses  Sales Expenses KHD continues to actively invest in market development and intensifying customer relations. Conscious selection of the tenders to be processed leads to higher efficiency and reduction of sales expenses. Sales expenses also include tendering co

  13. Slide 13: Segment Earnings

    Segment Earnings Segment Capex Segment Plant Services  Revenues of € 104,2 million were slightly below  Revenues of € 42,1 million are almost unchanged those of the previous year (€ 108,8 million). compared to the previous year (€ 43,0 million).  Adjusted gross profit of € -0,2 million (€ -12,0 

  14. Slide 14: Key Figures at a Glance

    Key Figures at a Glance (in € million) Dec. 31, 2019 Dec. 31, 2018 Deviation Equity 101,5 123,1 -21,6 Equity ratio 39,6% 45,5% Cash 82,6 72,2 10,4 Intercompany loans 100,0 100,0 0,0 Net working capital * -51,2 -22,5 -28,7 Order backlog 307,8 153,6 154,2 Employees 664 703 -39 * Balance of current ass

  15. Slide 15: Financial Position

    Financial Position  Total assets as of Dec. 31, 2019 amounted to € 256,7 million (previous year: € 270,4 million), of which  Cash and cash equivalents € 82,6 million (previous year: € 72,2 million).  Loan to AVIC totaling € 100 million (previous year: € 100 million).  In total, 67% of the balanc

  16. Slide 16: Employees

    Employees  664 employees at the end of 2019 (end of 2018: 703 employees).  Significant shift between Europe (-114 employees) and India (+65 employees) over three years.  Reorganization at Humboldt Wedag GmbH clearly visible in FY 2019.  The forecast figures as of December 31, 2020 confirms the t

  17. Slide 17: Agenda

    Agenda Business Performance 2019 Financial Performance 2019 First eight Months (Jan. – August) of the Financial Year 2020 Outlook and Strategy Questions 17 Annual General Meeting – October 2020

  18. Slide 18: Key Figures January to August 2020

    Key Figures January to August 2020 Jan. - Aug. Jan. - Aug. (in € million) Deviation 2020 2019 Order intake 36,5 254,7 -218,2 Revenue 89,7 103,8 -14,1 Adjusted gross profit * 11,6 9,2 2,4 Adjusted gross profit margin 12,9% 8,9% Adjusted EBIT * -4,0 -8,7 4,7 Adjusted EBIT margin -4,5% -8,4% EBT -0,4 -

  19. Slide 19: Key Figures January to August 2020

    Key Figures January to August 2020 (in € million) Aug. 31, 2020 Dec. 31, 2019 Deviation Equity 96,7 101,5 -4,8 Equity ratio 38,7% 37,5% Cash 72,8 82,6 -9,8 Intercompany loans 100,0 100,0 0,0 Net working capital -46,3 -51,2 4,9 Order backlog 239,1 307,8 -68,7 Employees 667 664 3 Jan. - Aug. Jan. - Au

  20. Slide 20: Agenda

    Agenda Business Performance 2019 Financial Performance 2019 First eight Months (Jan. – August) of the Financial Year 2020 Outlook and Strategy Questions 20 Annual General Meeting – October 2020

  21. Slide 21: Outlook – Markets 2020

    Outlook – Markets 2020  The COVID-19 pandemic has left very clear traces in the forecasts for cement consumption and the investment behavior of cement producers:  According to CW Research, worldwide cement consumption is expected to decline by about 9% in 2020.  Uncertainties regarding the future

  22. Slide 22: Outlook – Markets 2020

    Outlook – Markets 2020  Projected cement consumption for 2020 according to BNP Paribas 22 Annual General Meeting – October 2020

  23. Slide 23: Outlook – Markets 2021 et seq.

    Outlook – Markets 2021 et seq.  Projected cement consumption for 2021/2022 according to BNP Paribas 23 Annual General Meeting – October 2020

  24. Slide 24: Global Cement Consumption (in billion tons)

    Global Cement Consumption (in billion tons) 4,50  Cement consumption has 4,05 4,04 4,15 4,05 4,11 4,05 4,05 4,03 4,06 4,10 4,15 4,20 stagnated since 2013. 4,00 3,57 3,78 3,68 3,53 3,55 3,60  The year 2020 and the following 3,52 3,50 3,23 years will be severely affected by 3,01 the effects of the C

  25. Slide 25: Business Strategy at KHD (1)

    Business Strategy at KHD (1)  Consistent continuation of the measures introduced in previous years.  Focus on projects where KHD offers customers real added value - not purely volume-driven growth.  Careful selection with regard to the risk structure of projects.  No participation in ruinous pri

  26. Slide 26: Business Strategy at KHD (2)

    Business Strategy at KHD (2) Strategy / Objectives Actions Technology Leadership • Ongoing product development through investment in R&D with a focus on environmental and energy efficiency • Success stories: PYRORDOX® and PYROROTOR® Quality leadership through operational • Global engineering for opt

  27. Slide 27: Business Strategy at KHD (3)

    Business Strategy at KHD (3) Strategy / Objectives Actions Generate additional business volume in the • Focusing of sales activities and fast processing of customer Plant Services segment inquiries • Strengthening the consulting function for our customers (Plant Audits) • Development of service conc

  28. Slide 28: R&D at KHD – Expansion of Product Portfolio

    R&D at KHD – Expansion of Product Portfolio Available today R&D Focus Excellent PYRO Equipment, • AF-solutions with integrative scope-expansion New Products PYROREDOX®, PYROROTOR® • New PH-Technology Good roller press/ Comflex • Suitable for higher fineness and composite cements • Performance increa

  29. Slide 29: R&D at KHD – De-carbonization of the Cement Production

    R&D at KHD – De-carbonization of the Cement Production Focus of technological developments: Roadmap for CO2-reduction in the cement industry » Energy efficiency: (iea, World Business Council for Sustainable Development) » KHD roller press » KHD pyro lines » Alternative fuels: » PYROROTOR® » PYROREDO

  30. Slide 30: Agenda

    Agenda Business Performance 2019 Financial Performance 2019 First eight Months (Jan. – August) of the Financial Year 2020 Outlook and Strategy Questions 30 Annual General Meeting – October 2020

  31. Slide 31: Questions

    Questions 31 Annual General Meeting – October 2020

  32. Slide 32: Disclaimer for Forward-Looking Information

    Disclaimer for Forward-Looking Information This document contains statements which are, or may be deemed to be, "forward-looking statements" which are prospective in nature. Forward- looking statements are not based on historical facts, but rather on current expectations and projections about future

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